The Bank of Japan indicated that it intends to proceed with discussions centered on a proposal to raise the policy rate to around 1.25% at its next Monetary Policy Meeting. It will consider its response at upcoming meetings while taking into account upside risks to prices.
Bank of Japan Governor Kazuo Ueda (植田和男) said the Bank plans to consider raising the policy rate at its next Monetary Policy Meeting. The central proposal is expected to be to raise the rate from its current level to around 1.25%, with policy to be conducted while taking into account upside risks to prices.
The press conference followed the G20 meeting of finance ministers and central bank governors. Governor Ueda said, “I would like to discuss this at every meeting, including the next one,” emphasizing the continuity of discussions going forward. US Treasury Secretary Scott Bessent (ベセント) was also mentioned, and remarks calling for a shift away from the low-interest-rate policy were made in his greeting.
The yield on the newly issued 10-year Japanese government bond, a benchmark for long-term interest rates, briefly rose into the 3% range amid expectations of a BOJ rate hike and fiscal concerns. Many market participants expect a rate hike at the September meeting, heightening interest in the latest developments.
The Bank of Japan raised the policy rate to around 1.0% in June and left it unchanged in July. At the press conference, Governor Ueda indicated that the Bank could accelerate the pace of rate hikes if necessary, drawing attention to its response at upcoming meetings.